US-China Tariff Cuts Take Effect in Landmark 90-Day Trade Deal

In a significant move to de-escalate one of the most disruptive global trade conflicts in recent history, the United States and China have agreed to slash tariffs on each other’s goods for a 90-day period, signaling a hopeful pause in a prolonged trade war that rattled international markets and strained supply chains.

The breakthrough came over the weekend during high-stakes negotiations in Geneva, where trade officials from both superpowers laid the groundwork for a temporary ceasefire in the economic standoff.

As part of the agreement, the United States has reduced its tariffs on Chinese goods to 30%, while China has slashed its own retaliatory levies to just 10%. These reductions—down from punitive rates that had soared above 145%—officially took effect just after midnight Washington time on Wednesday (0401 GMT).

Speaking aboard Air Force One en route to the Middle East, U.S. President Donald Trump described the agreement as the foundation of a “very, very strong deal” with China. In an interview with Fox News, Trump emphasized the potential for American companies to gain unprecedented access to the Chinese market.

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“One of the most exciting parts of the deal is the opening up of China to U.S. businesses,” Trump said, calling it a game-changer for American companies long hampered by market barriers in China.

The president, who had previously imposed sweeping tariffs on imports from multiple countries, said this development could be mutually beneficial for both economic giants.

The trade war, which saw tit-for-tat tariffs escalate over the past two years, had weighed heavily on global markets. American and Chinese businesses alike were hit by rising costs, disrupted supply chains, and slowing growth.

The surprise tariff rollback has already begun to lift investor sentiment, with global stock markets rallying in anticipation of improved trade relations.

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While U.S. officials have celebrated the truce as a strategic win, Chinese leaders have taken a more cautious tone. At a summit with Latin American leaders in Beijing this week, President Xi Jinping reaffirmed China’s commitment to global trade and multilateral cooperation.

“There are no winners in tariff wars or trade wars,” Xi told the gathering, while Foreign Minister Wang Yi criticized what he called “a major power” that operates under the belief that “might makes right.”

Though the 90-day truce offers breathing room, it remains uncertain whether the temporary reduction in tariffs will evolve into a long-term agreement. Trump hinted that continued negotiations could lead to a more comprehensive deal, but officials have not disclosed concrete timelines or conditions for permanent tariff rollbacks.

For now, the ceasefire offers a much-needed reprieve for industries, investors, and consumers around the world